During the week ending September 4, hot rolled coil (HRC) prices in the local Chinese market have continued to decline, while market sentiment is depressed. Average HRC prices in the domestic market can be viewed in the SteelOrbis price reports section.
Amid the slowdown of domestic economic growth and overcapacity issues, the Chinese steel industry continues to go through a difficult period. Meanwhile, as raw material costs decline, HRC traders are increasingly cautious about concluding purchases.
On September 1, Chinese steel producer Shagang Corporation announced a cut of RMB 320/mt ($50/mt) in its listed HRC prices. As a result, its offer of 5.5 mm x 1,500 mm HRC products for the domestic market now stands at RMB 3,500/mt ($552/mt) for September shipment.
Amid continuing lackluster demand and the depressed sentiment of traders, it is expected that HRC prices in the Chinese domestic market will continue to move downwards in the coming week.